Central Banks
World Currency Reserves Shrink by $1 Trillion in Record Drawdown
- Central banks dip into reserves to defend their currencies
- Investor calls falling reserves ‘the canary in the coal mine’
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Global foreign-currency reserves are falling at the fastest pace on record, as central banks from India to the Czech Republic intervene to support their currencies.
Reserves have declined by about $1 trillion, or 7.8%, this year to $12 trillion, the biggest drop since Bloomberg started to compile the data in 2003.